How To Become a Millionaire

A post entitled "How to Become a Millionaire" might seem out of place on a blog about frugality, but it's really not. A Canadian man who calls himself "Frugal Trader" is on a quest to become a millionaire by the time he is 35 years old. He's 28 now.

He hopes to accomplish this financial goal by investing wisely and living below his means. In other words, he is living a life of frugality to accomplish his goal of becoming wealthy.

Mind you, Frugal Trader and his wife earn about $105,000 a year, so their income certainly makes it possible for them to become millionaires one day. Can they do it within 7 years? That is the focus of Frugal Trader's blog, Million Dollar Journey.

Frugal trader maintains his anonymity while disclosing financial details such as the amount he has in savings, stocks he has purchased and Net Worth Updates.

I'm not that forthcoming, but from the information I have gathered from sites like Million Dollar Journey, this seems to be the formula for becoming a millionaire:

1. Live below your means.
2. Invest your disposable income in a mix of stocks and bonds. Do not sink all of your money into one investment.
3. Pay yourself first. That means taking 10 or 20 percent of your take home pay and investing it or saving it. Make it automatic through payroll deduction and you won't miss it.
4. Have an emergency fund. Emergencies can kill your finances. Be prepared.

That's it. Give it 10 or 20 years or even more and you too can become a millionaire. That doesn't seem like very exciting advice, and it's not. You won't become a millionaire overnight with this method, but that's not the point. The advice also seems a bit simplistic, and it is. However, how many people actually follow the four steps listed above? Not many...and that's why they are not millionaires...nor are they in a positive financial situation.

Live a life of Savvy Frugality and you CAN become a millionaire...someday.